Most commercial computer softwares are distributed with licenses. For example, in a retail shop, softwares are distributed in packages that are shrinked-wrapped. A so-called “shrink-wrap” license accompanies each software package. Such software licensing is based on a licensee's trust and honesty to abide by the license agreement, for example, by breaking the shrink-wrap and agreeing to install a copy of the software in only one computer. In a similar manner, a “site” license allows a licensee to install a predetermined number of copies of a software in many computers, for example, at a site or organisation.
To enable a licensee to install a software package 10, a product installation key 14, as shown in FIGS. 1A and 1B, typically consisting of 16 alphanumeric characters, is also included in the software package. To begin installation of the software package, an installation manager prompts a licensee to enter the product installation key 14. The installation manager then authenticates the software to ensure that the software is genuine before the software is installed into the computer.
These software product installation keys in the form of alphanumeric characters are visible and, thus, cannot prevent a software from being installed in more than the agreed number of copies. Enforcement of copyright of these softwares depends very much on the licensee's organizations that own these softwares. It is obvious that enforcement of copyright of softwares installed in homes or small businesses is less effective.
To ensure more effective enforcement of softwares copyright and licensing, attempts have been made to distribute softwares that require dongles. Each dongle is connected to one of the I/O ports of a computer. Such a protected software queries the I/O port to which a dongle is connected at start-up and at predetermined time intervals during its operation. This means a licensee can only run one copy of the software with a dongle supplied with the software. However, this does not prevent a user from making copies of the software in other machines and operating the software therefrom.
It can thus be seen that there exists a need for another system for protecting the copyright of softwares and ensuring more effective licensing control. The present invention also aims to overcome the disadvantages of the existing prior art.